Microsoft Invests $2.7 Billion in Brazil's AI and Cloud Infrastructure

Elon Musk's Raging Feud Aside, Brazil Attracts $2.7B Investment From Microsoft To Boost AI Ecosystem - Microsoft (NASDAQ:MSFT)

While Tesla and SpaceX CEO Elon Musk's legal and operational difficulties in Brazil are ongoing, Microsoft Corporation MSFT has made progress in the country by pledging a $2.7 billion investment. What Happened: On Thursday, Wedbush analyst Dan Ives highlighted this news that Microsoft's investment, the largest single commitment by the company in Brazil, is intended to nurture the AI ecosystem in Latin America's largest economy. Ives shared a post by a user named Evan on X, formerly Twitter. The post highlighted that Microsoft's investment will span over the next three years and focus on the development of the AI ecosystem in the region. According to a study commissioned by the Satya Nadella company, widespread AI adoption in Brazil could boost the country's GDP growth by 4.2 percentage points by 2030. Brazil currently has a population of more than 220 million people, with at least 177 million internet users as of 2023. According the Statista, the number of internet users in Brazil is projected to grow by 34.2 million between 2024 and 2029. Subscribe to the Benzinga Tech Trends newsletter to get all the latest tech developments delivered to your inbox. Why It Matters: While Microsoft is advancing in Brazil, Musk's companies, particularly X and Starlink, are encountering substantial legal and operational hurdles. Access to X has been blocked in Brazil since late August 2024, following the company's failure to comply with orders to block certain accounts accused of spreading misinformation and hate speech. This decision came after a protracted dispute between Musk and Justice Alexandre de Moraes. Brazil's Supreme Court has now also unfrozen Musk's companies' bank accounts after they transferred approximately $3.3 million to cover fines owed by X. X is now seeking to restore its services in Brazil by appointing a legal representative and complying with other court orders. Previously, Brazilian President Luiz Inácio Lula da Silva also criticized Musk's ideological stand and stated, "The world is not obliged to put up with Musk's far-right ideology just because he is rich." Photo Courtesy: Shutterstock.com Check out more of Benzinga's Consumer Tech coverage by following this link. Read Next: Apple's Former Design Maestro Jony Ive Confirms He's Joined Forces With OpenAI's Sam Altman For A New AI Hardware Project Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors. Market News and Data brought to you by Benzinga APIs

Microsoft to make $2.7 billion cloud, AI investments in Brazil

SAO PAULO, Sept 26 (Reuters) - Microsoft (MSFT.O), opens new tab on Thursday pledged to invest 14.7 billion reais ($2.70 billion) in Brazil over three years to enhance its cloud infrastructure and artificial intelligence (AI) in Latin America's largest economy. WHY IT'S IMPORTANT The amount is the largest-ever investment to be announced at once in Brazil by Microsoft, which said massive adoption of AI could add as much as 4.2 percentage points to Brazil's economic growth by the end of the decade. Advertisement · Scroll to continue ADDITIONAL CONTEXT The investments are part of the broader "Microsoft Mais Brasil" program disclosed by the U.S. tech giant in 2020 to reinforce its long-term commitment to the South American nation. The company said it will expand its cloud and AI infrastructure in several datacenters in Sao Paulo state and offer AI training to some 5 million people over the next three years. KEY QUOTES "We are committed to supporting the AI transformation in Brazil and ensuring it benefits everyone," Microsoft Chief Executive Satya Nadella said. Advertisement · Scroll to continue Brazilian Vice President Geraldo Alckmin said the investment proves the country can be a global AI protagonist, and emphasized the renewable energy supply available in Brazil to power datacenters. ($1 = 5.4376 reais) Reporting by Patricia Vilas Boas; Editing by Richard Chang Our Standards: The Thomson Reuters Trust Principles., opens new tab

Microsoft to make $2.7 billion cloud, AI investments in Brazil

SAO PAULO (Reuters) - Microsoft on Thursday pledged to invest 14.7 billion reais ($2.70 billion) in Brazil over three years to enhance its cloud infrastructure and artificial intelligence (AI) in Latin America's largest economy. WHY IT'S IMPORTANT The amount is the largest-ever investment to be announced at once in Brazil by Microsoft, which said massive adoption of AI could add as much as 4.2 percentage points to Brazil's economic growth by the end of the decade. ADDITIONAL CONTEXT The investments are part of the broader "Microsoft Mais Brasil" program disclosed by the U.S. tech giant in 2020 to reinforce its long-term commitment to the South American nation. The company said it will expand its cloud and AI infrastructure in several datacenters in Sao Paulo state and offer AI training to some 5 million people over the next three years. KEY QUOTES "We are committed to supporting the AI transformation in Brazil and ensuring it benefits everyone," Microsoft Chief Executive Satya Nadella said. Brazilian Vice President Geraldo Alckmin said the investment proves the country can be a global AI protagonist, and emphasized the renewable energy supply available in Brazil to power datacenters. (Reporting by Patricia Vilas Boas; Editing by Richard Chang)